All Forum Posts by: David Edwards

 Eugene, The exit strategy is Build & hold as a room rental property in Houston Texas. Target audience is travel professionals and others that desire luxury with less hassle.

Hi @Eugene Neal,

In the past two years I have 3 buy, rehab, and hold projects. Formatting the homes as room rentals.

I also have completed 2 flips, one land with plans developed and one home rehab.

3 years ago I completed another flip.

-Dave

As of today (3/28/23) I have city approved and stamped plans with all permits paid but my financing has fallen apart, tryign to get this going

While I have history with rehab projects as well as buy and hold room rental properties generating very high cash flows I do not have new build experience.

I have a general contractor with nearly 20 years of build experience, for both himself and clients, he's worked with me on the project and was going to be on the loan with me but recently due to concerns about tax and legal implications ahs decided he can't be on the loan, I don't hold this against him. 

How can I go about getting this funded?

More project details:

Land owned outright via a cash purchase ($76k purchase 9 months ago)

5200 sq foot duplex with a $650k build cost estimate

Shovel ready plans

Each side is 6 primary bedrooms with their own baths and 2 more bedrooms sharing a bath, this makes it a 16 bed 14 bath duplex.

Valuation estimate of $850k - $950k.

I will have about $100k in cash on hand after the sale of another property and another $100k I can tap into if required. this is ideally to fund project work refunded with draws.

Build time estimate 4 month, but lets assume 8 months to set expectations. 

I would appreciate any advice or connections.

Thank you,

-Dave Edwards

PadSplit host in Houston here, I was actually the first Houston host with my first property going live in April of 2021. 

I have 3 homes up on Platform and manage another 2 homes. The homes I own total to 24 bedrooms, 8 bedrooms per home (1 master and 7 shared bath bedrooms). The ones I manage total to 20 bedrooms.

These rooms rent for between $125 to $225 per week depending on room size and amenities in the room (beyond basic amenities may include: Desk, Tv, private entry, tenant controlled AC, additional storage).

This month after padsplit takes their 14.25% cut of the revenue I am recieving, from the units I own, $15,230 from 3 homes. After all PITI, utility, and services (lawncare and cleaning) costs I have $7,225.

I set aside 25% of this for my maintenance fund.

The remainder funds my lifestyle, wife has a Tesla, and quarterly vacations as well as business growth.

In 2023 I am tracking to build 4 duplex units designed as room rentals funded in part from a recent land sale. With this I will have an additional 8 units bringing in $20k+ in after expenses revenue.

Always happy to talk if you have questions, just reach out.

PadSplit host in Houston here and I have had a pretty good experience thus far. I would echo the statments made by others that things are more management intensive than a si gle family rental, but not 10x for intensive even though I make 10x the cashflow of a single family rental with the same financing. 

I have 3 homes up on Platform and manage another 2 homes. The homes I own total to 24 bedrooms, 8 bedrooms per home (1 master and 7 shared bath bedrooms). The ones I manage total to 20 bedrooms.

These rooms rent for between $125 to $225 per week depending on room size and amenities in the room (beyond basic amenities may include: Desk, Tv, private entry, tenant controlled AC, additional storage).

This month after padsplit takes their 14.25% cut of the revenue I am recieving, from the units I own, $15,230 from 3 homes. After all PITI, utility, and services (lawncare and cleaning) costs I have $7,225.

I set aside 25% of this for my maintenance fund.

The remainder funds my lifestyle, wife has a Tesla, and quarterly vacations as well as business growth.

In 2023 I am tracking to build 4 duplex units designed as room rentals funded in part from a recent land sale. With this I will have an additional 8 units bringing in $20k+ in after expenses revenue.

PadSplit host in Houston here, my experience has been good thus far. Some highlights: I have 3 homes up on Platform and manage another 2 homes. The homes I own total to 24 bedrooms, 8 bedrooms per home (1 master and 7 shared bath bedrooms). The ones I manage total to 20 bedrooms.

These rooms rent for between $125 to $225 per week depending on room size and amenities in the room (beyond basic amenities may include: Desk, Tv, private entry, tenant controlled AC, additional storage).

This month after padsplit takes their 14.25% cut of the revenue I am recieving, from the units I own, $15,230 from 3 homes. After all PITI, utility, and services (lawncare and cleaning) costs I have $7,225.

I set aside 25% of this for my maintenance fund.

The remainder funds my lifestyle, wife has a Tesla, and quarterly vacations as well as business growth.

In 2023 I am tracking to build 4 duplex units designed as room rentals funded in part from a recent land sale. With this I will have an additional 8 units bringing in $20k+ in after expenses revenue.

Come join us for a tour and discussion of the co-living strategy and tactics to maximize occupancy, revenue, and tenant enjoyment.

This is a different home than the one toured at the last event!

Co-Living offers a way for investors to gain many of the benefits of multi-family homes such as increased rental income and security while taking advantage of the relatively higher availability of single family homes that may be converted to this strategy.

Come tour a home that's completed all rehab and is set to go live! 

We'll talk about costs, purposeful rehab, strategy, advantages & challenges.

We look forward to see you there

@juan Campos

Co-living is supported by a growing group on property managers as the need for affordable housing become hotter.

padaplit is one such company that is growing in landlord friendly areas throughout the country. You also have bungalow.com and others in differing markets.

in general co-living is broadly viable given the sheer amount of revenue that can be generated, though you do need to evaluate local laws and custom as you progress.

Come join us for a tour and discussion of the co-living strategy and tactics to maximize occupancy, revenue, and tenant enjoyment.

Co-Living offers a way for investors to gain many of the benefits of multi-family homes such as increased rental income and security while taking advantage of the relatively higher availability of single family homes that may be converted to this strategy.

Come tour a home that's completed phase 1 refit, observe the process, and partake in discussion.